Package Holidays to Dubai and Egypt Offer Lower Prices as European Costs Rise
Package holidays to Dubai and Egypt – With the ongoing conflict in Iran, many UK families are redirecting their summer vacations from Middle Eastern regions to safer European destinations. This shift has led to significant price drops for family packages to Dubai and Egypt, while holidays in Spain, Portugal, and Greece have seen modest increases. TravelSupermarket data for the BBC highlights the trend, showing UAE stays are 25% cheaper this August compared to last year, and Egypt is 8% less expensive. In contrast, European destinations like Spain and Greece have experienced price hikes of 3-5%.
Travelers Opt for Safer Alternatives
Tim and Natalie Harris from Swansea initially planned a Dubai trip with their teenage daughters but canceled after the war began. “We found a package for £6,400 in Mexico, which we’re now booking,” says Tim. The Foreign Office recently eased its travel warning for Dubai following a US-Iran ceasefire, though it still advises caution. Tour operators have responded by lowering prices for other regions, including Morocco (6.5% drop), Tunisia (2.5% cheaper), and Turkey (1.6% lower than last summer).
Customer Nervousness and Adaptations
Mollie Hitchen, assistant manager at Marple Travel Hyde, notes that travelers are now more cautious about Middle Eastern destinations or being stranded abroad due to fuel shortages. “People ask a lot of questions, but we reassure them there are no issues with these places,” she explains. Flora Badger, who delayed her booking to avoid summer price spikes, chose Lanzarote in September. “Price was a huge issue,” she says. “It’s frustrating how much it goes up during school holidays.”
Car Hire Costs Drop Amid Booking Shifts
Flora also benefited from reduced car rental prices across popular destinations. The post-pandemic slowdown in new car production has increased supply and competition among hire companies, making it more affordable than airport transfers for her family. TravelSupermarket’s data, based on searches from April 18 to June 17, shows average seven-night all-inclusive family stays in August 2025 are up 4% in Spain, 3% in Portugal, and 5% in Greece. A family of four could now pay up to £160 more for a Spain trip, totaling £4,340.
Booking Trends and Extended Stays
Richard Slater, managing director of Henbury Travel Limited, reports a surge in bookings since the ceasefire agreement. “We’ve booked a month’s worth of trips in just a week,” he says, noting a rise in Mediterranean last-minute stays and cruise packages. He adds that travelers are now opting for longer holidays, with eight- to ten-night stays becoming more common than the traditional two-week break. “Two weeks used to be the norm, but now we sell far fewer of those,” he observes.
